NSC Insights • Marine Staffing

Navy & Coast Guard Work Is
Reshaping U.S. Shipyards

Navy and Coast Guard work now moving through U.S. shipyards ranges from first-in-class icebreakers to submarine maintenance and cutter life extensions. Each type of work asks something different of the workforce, and the plan has to account for all of them.

8 min read • October 2026
~$25B
Nearly $25 billion for the Coast Guard in the One Big Beautiful Bill Act
11
Arctic Security Cutters under contract, up to seven planned for U.S. construction
20 to 100%
Longer than the Navy's final schedules for many conventional maintenance periods
15,000+
Attack submarine operational days lost to maintenance delays, FY2016 to FY2025
Sources: U.S. Coast Guard, July 4, 2025 (enacted funding; spending occurs over multiple years); U.S. Coast Guard, Dec. 29, 2025 and Feb. 11, 2026; Congressional Budget Office, Dec. 2025 (314 destroyer and amphibious ship maintenance events, 2011 to 2024); GAO-26-109256, Aug. 27, 2026.

Key Takeaways

  • Navy and Coast Guard work across the U.S. maritime industrial base includes new construction, repair and maintenance, modernization, and service-life extension. Most shipyards specialize in some of these, not all.
  • Current Navy work spans submarine, destroyer, frigate, and auxiliary construction alongside a large maintenance workload that CBO and GAO have found frequently runs longer than planned.
  • The Coast Guard is adding new construction (Polar Security Cutter, Arctic Security Cutter, Offshore Patrol Cutter, Fast Response Cutter, Waterways Commerce Cutter) while extending the life of existing cutters through its In-Service Vessel Sustainment program.
  • GAO reports that both Navy and Coast Guard shipbuilders face challenges training, recruiting, and retaining trades workers such as welders, pipefitters, and machinists.
  • Because construction, repair, and modernization run on different schedules and use different trade mixes, workforce plans work best when they are built around the actual project mix and phase timing at each yard.

When people talk about U.S. shipbuilding, the conversation usually starts with new hulls. That is only part of the picture.

On any given month, the maritime industrial base is cutting steel for new Coast Guard icebreakers, building submarines and destroyers, running maintenance availabilities on Navy surface ships, overhauling submarines at the public shipyards, and extending the service life of cutters that have been in the fleet for decades.

Federal funding is reinforcing that range of work. The Navy's FY2027 budget request seeks $65.8 billion for shipbuilding. The One Big Beautiful Bill Act provided the Coast Guard nearly $25 billion. Neither number translates directly into a hiring figure, and much of that money is spread over years. But both point to a workload that will continue to include new construction and fleet sustainment at the same time.

For shipyard and marine industry leaders, the useful question is not simply how much work is coming. It is what kind of work is coming, when each phase peaks, and which trades each type of work will need.

U.S. Shipyards Are Supporting More Than New Construction

The U.S. maritime industrial base is not one type of shipyard doing one type of work.

The White House's Maritime Action Plan, released in February 2026, counts 66 U.S. shipyards capable of working on large vessels: eight active shipbuilding yards, 11 yards with build positions, 22 repair yards with drydocking, and 25 topside repair yards. That breakdown alone shows how much of the base is organized around repair rather than new construction.

How Navy work is divided reinforces the point. According to CBO, most maintenance for conventional Navy ships is performed under contract at private shipyards, while most maintenance for nuclear-powered ships is performed at the Navy's public shipyards. GAO reported in February 2025 that 12 companies conduct major repair periods for Navy surface ships.

The Coast Guard follows a similar pattern. New cutters are built at commercial yards, while its In-Service Vessel Sustainment program, which covers service-life extensions and major maintenance on existing cutters, is performed primarily at the Coast Guard Yard in Curtis Bay, Maryland, and at commercial shipyards.

Workforce implication: A yard's workforce needs depend on where it sits in this mix. A new-construction yard, a drydock repair yard, and a topside repair contractor may all hire welders and pipefitters, but they will not need them in the same numbers, for the same durations, or on the same schedule.

What Current Navy Work Means for Shipyards

Navy work currently reaches U.S. shipyards through several channels at once.

New construction. The Navy's FY2027 budget request, released April 21, 2026, asks for 34 ships: 18 battle force ships and 16 auxiliary ships. The request includes one Columbia-class submarine, two Virginia-class submarines, one Arleigh Burke-class destroyer, one FF(X) frigate, amphibious ships, six Medium Landing Ships, two John Lewis-class oilers, and incremental funding for the CVN 80 and CVN 81 carriers. This is a budget request, not enacted funding, and it describes planned procurement rather than current shipyard workload.

Work already under contract is behind schedule in several programs. GAO reported in April 2026 that:

  • The lead Columbia-class submarine was at least 18 months behind its contract delivery date.
  • Virginia-class submarine construction was running at about one boat per year as of June 2025, half the Navy's goal of two.
  • Delays on DDG 51 Flight III destroyers had grown to between 22 and 58 months.
  • The Navy announced termination of work on four of the six Constellation-class frigates under contract.
  • None of the seven shipbuilders constructing Navy battle force ships were positioned to meet the Navy's delivery goals.

Repair and maintenance. Maintenance is a separate and substantial workload. CBO's December 2025 analysis found that conventional Navy ship maintenance periods often take 20 to 100 percent longer than the Navy's final schedules. CBO also reported that contracts are sometimes awarded only one or two months before a maintenance event starts, which can delay parts, materials, and the hiring of workers for the job.

GAO reported in February 2025 that the Navy estimates its planned surface ship repair workload could exceed private repair companies' workforce capacity in San Diego, Mayport, and Pearl Harbor at some times through fiscal year 2031.

On the submarine side, GAO found in August 2026 that maintenance delays cost the Navy more than 15,000 attack submarine operational days over fiscal years 2016 through 2025, with limited dry dock capacity at the naval shipyards among the contributing factors.

Modernization. Modernization adds new systems or capabilities to ships already in service. CBO found that maintenance and modernization contracts are separate and originate in two different Navy organizations, and that completing both types of work simultaneously was challenging and often led to delays. CBO reported that a Navy official identified poor integration of modernization activities as a key driver of delays and labor overruns.

Shipyard infrastructure. The Navy is also rebuilding the public shipyards themselves. Its Shipyard Infrastructure Optimization Program (SIOP) covers dry docks and facilities at the four public naval shipyards. GAO reported in September 2026 that SIOP costs are expected to surpass $200 billion, with planned projects extending past 2080.

Workforce implication: Navy work is not one demand curve. Construction programs ramp over years, maintenance arrives in fixed windows that often extend, and modernization can add specialized scope inside those windows. Each needs its own labor forecast.

Quick Assessment

How Early Does Recruiting Start?

Which statement best describes your current approach?

Coast Guard Construction and Fleet Modernization Add Another Layer

The Coast Guard is in an unusual position: it is recapitalizing several cutter classes at the same time it works to keep older cutters in service. The One Big Beautiful Bill Act, enacted in July 2025, provided the service nearly $25 billion, which it described as the largest single funding commitment in its history.

New construction currently underway or under contract

  • Polar Security Cutter. Bollinger Shipyards received Coast Guard approval in May 2025 to begin full production of the first heavy polar icebreaker at its Pascagoula, Mississippi, yard. GAO reported in April 2026 that the program remains significantly behind its original schedule, with the second and third ships delayed until 2032 and 2034.
  • Arctic Security Cutter. On Dec. 29, 2025, the Coast Guard awarded contracts to Rauma Marine Constructions in Finland and Bollinger Shipyards Lockport in Louisiana for up to six Arctic Security Cutters, up to four of them to be built in the United States. On Feb. 11, 2026, it awarded Davie Defense a contract for five more, three of them to be built domestically, bringing the total to 11. The Coast Guard expects the first U.S.-built Arctic Security Cutter in 2029. USNI News reported that steel cutting began in April 2026 at Bollinger's Gulf Coast operations.
  • Offshore Patrol Cutter. The Coast Guard plans 25 OPCs. GAO reported in November 2025 that none had been delivered, that the Coast Guard terminated the third and fourth Stage 1 ships for default in July 2025, and that construction was underway at both Stage 1 and Stage 2 builders. Coast Guard acquisition updates show Stage 2 production underway at Austal USA in Mobile, Alabama, including a second Stage 2 hull that began production in August 2025.
  • Fast Response Cutter. In September 2025, the Coast Guard exercised a $507 million option for 10 additional Fast Response Cutters from Bollinger Shipyards in Lockport, Louisiana, raising the program of record to 77. First delivery under the new option is expected in fiscal year 2028.
  • Waterways Commerce Cutter. Birdon America began construction of the first Waterways Commerce Cutter in Bayou La Batre, Alabama, in June 2025. The Coast Guard plans 30 of these inland tenders to replace a fleet with an average age of nearly 60 years.

Sustainment and service-life extension. The Coast Guard's In-Service Vessel Sustainment program decides class by class which cutters receive major maintenance or service-life extension work. As of the program's June 2026 update, current projects include service-life extensions for 270-foot medium endurance cutters and 47-foot motor lifeboats, major maintenance availabilities for 175-foot coastal buoy tenders starting in 2025, planning for a Healy service-life extension with phased production from 2027, and major maintenance planning for the 418-foot National Security Cutters. The Polar Star service-life extension was completed in 2025.

Workforce condition, documented: GAO reported in November 2025 that OPC shipbuilders have struggled to hire and retain qualified workers, resulting in the need to hire more inexperienced workers. In April 2026, GAO also reported that Coast Guard officials said the service was not investing in the shipbuilding trades workforce because it lacked funding for those investments.

Workforce implication: Coast Guard work is concentrated in specific yards and regions, especially along the Gulf Coast, and spans first-in-class builds, serial production, and life extension. The same region may see several of these at once.

Different Work Requires Different Workforce Strategies

New construction, repair, modernization, and service-life extension all draw on skilled marine trades. GAO's April 2026 report names welders, pipefitters, and machinists among the trades that Navy and Coast Guard shipbuilders find hard to train, recruit, and retain. What changes from one type of work to the next is how, when, and for how long those trades are needed.

The comparisons below are workforce-planning considerations rather than documented industry standards. They will vary by yard, vessel, and contract.

New construction

  • Labor demand typically builds over months or years as a program moves from fabrication and module work into erection, outfitting, and testing.
  • Trade emphasis can shift across phases, for example from structural welding and shipfitting toward pipefitting, electrical, and systems work as outfitting progresses.
  • Proficiency is a long-term factor. GAO reported in February 2025 that shipbuilder documentation indicated it takes 3 to 5 years for an employee to gain proficiency in the skilled trades.
  • Company-reported growth shows the scale involved. Bollinger reported in May 2025 that its Mississippi workforce had grown more than 61 percent since November 2022, with production roles up more than 178 percent.

Repair and maintenance

  • Work is tied to availability windows that are scheduled around fleet needs.
  • Scope can grow once a ship is opened up, and CBO's findings show schedules often extend.
  • Late contract awards can compress the time available to hire, as CBO documented.
  • Demand can be concentrated in fleet concentration areas, where several contractors may be ramping at once.

Modernization and overhaul

  • Work often involves removing and installing systems, which can increase the need for electricians, marine electricians, pipefitters, and technicians alongside structural trades.
  • When modernization runs alongside maintenance under separate contracts, coordination and supervision become workforce issues, not only scheduling issues.

Service-life extension

  • Life-extension work replaces aging systems on existing hulls. For the Coast Guard's 270-foot cutters, the Coast Guard has described the work as addressing electrical, weapons system, engine, and structural components.
  • These projects can combine structural repair with systems replacement, so they may require a broader trade mix than routine maintenance.
"A headcount number for a yard says little on its own."

Workforce implication: A headcount number for a yard says little on its own. The more useful plan breaks demand out by type of work, by trade, and by phase.

Workforce Planning Has to Follow the Work

The practical challenge for shipyards is not any one program. It is the combination of work on the schedule, and how that combination changes over time.

A few planning considerations follow from the research:

  • Map the project mix first. List each project as new construction, repair, modernization, or life extension, then forecast labor for each separately before combining them.
  • Forecast by trade and by phase. A program's total labor curve can hide a pipefitter or electrician peak that arrives months after structural work tops out.
  • Plan for schedule movement. CBO's maintenance findings and GAO's construction findings both show that schedules move. Plans that assume work ends on time can create overlap the yard did not plan for.
  • Watch for shared trades across programs. When construction, repair, and modernization peaks fall in the same window, they can compete for the same welders, shipfitters, pipefitters, and electricians, and for the experienced leads who supervise them.
  • Start recruiting before the peak. Qualification, safety training, and site or program access requirements take time. Recruiting tied only to contract award or availability start may leave little room, especially when awards come late.
  • Build in flexibility. As work moves from construction into testing, delivery, or from one availability to the next, a mix of core employees and supplemental labor can help a yard scale up and down without losing the experienced people it depends on.

None of this assumes every yard faces a shortage. It does mean that the type and timing of work should drive the workforce plan, rather than the plan being built around a single headcount target.

Quick Assessment

Is Your Workforce Plan Aligned With Your Project Mix?

Consider your next 12 to 24 months:

  1. Which projects are new construction, and which are repair, modernization, or life extension?
  2. Which skilled trades does each project need at each phase?
  3. When does each project reach its highest labor demand?
  4. Are the same specialized trades needed on more than one project at the same time?
  5. Where could a schedule slip or growth work create overlap or a gap?

Match Your Workforce Plan to the Work Ahead

Whether your next project is a new build, a repair availability, or a modernization package, the trade mix and timing will be different. NSC Marine supports shipyards and marine employers across new build, conversion, and repair work with skilled trades including welders, shipfitters, pipefitters, electricians, fabricators, blaster/painters, riggers, and firewatch. If you are planning around an upcoming project, we can help you think through the trades it will need and when.

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Frequently Asked Questions

U.S. shipyards support new construction of submarines, destroyers, frigates, amphibious ships, and auxiliaries, along with repair, maintenance, and modernization of ships already in the fleet. CBO reports that most conventional ship maintenance is done at private shipyards, while most nuclear-powered ship maintenance is done at the Navy's public shipyards.

As of 2025 and 2026 sources, the Coast Guard has the Polar Security Cutter, Arctic Security Cutter, Offshore Patrol Cutter, Fast Response Cutter, and Waterways Commerce Cutter programs in construction or under contract, along with service-life extension and major maintenance work under its In-Service Vessel Sustainment program.

New construction usually builds demand over a longer period, with trade emphasis shifting as work moves from structural fabrication to outfitting and testing. Repair work is tied to fixed availability windows and can change once work begins. CBO has found Navy maintenance periods often run 20 to 100 percent longer than scheduled.

It depends on the type of work and the phase. GAO has reported that Navy and Coast Guard shipbuilders face challenges hiring and retaining trades workers such as welders, pipefitters, and machinists. Shipfitters, electricians, and other craft trades are also used across construction, repair, and modernization.

Start by forecasting each project's labor needs by trade and phase, then combine them to see where peaks overlap. Planning for schedule changes and starting recruitment for critical trades before peak production gives a yard more time for qualification and onboarding.

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